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Great post HH, and great tread.

But hey, is it customary to add book value to calculate IV??

I thought Damodoran wrote "the value of any asset is the PV of expected future cashflows discounted at a rate appropriate to the riskiness of the cash flow".

Thus I've run many dozens DCF models and never added book value or anything to the PV of expected cashflows.

Am I a fool? Is it the rule or the exception to add BV to DCF to calculate IV??

Thanks

Phil

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